We’ll Show You How to Prep Your Home for Sale in a Down Market
Although it can be devastating (and potentially unavoidable), there are ways to prepare yourself and your home in the event of a housing crash in Peoria. Before any crisis occurs, it is important to have a plan in place just in case something should happen. While a softening market is likely to happen in the near future, any variable in the market is something to keep in mind throughout the home selling process.
Over the last few months, the United States has been experiencing a serious inflation rate hike, and it has actually soared higher than it has been in several decades. It has hit a 40-year-high with the 9.1% CPI over the summer. Because of all of this, home buyers have been leaving the housing market because they are unable to afford the increased prices. This is resulting in a reduction in demand for homes, and even home buyers who can afford the higher prices are reconsidering their decision to invest in a new home.
If you own a home or property in Peoria, AZ, you should certainly consider developing a plan for selling a home during a housing crisis. In the event that you need to sell when a crash occurs, you will have a strategy to protect your most valuable asset. At Your Home Sold Guaranteed Realty AZ, our team is knowledgeable and skilled when it comes to protecting your assets in an economic downturn in the local real estate market.
Keep reading if you are a homeowner considering selling your home during a housing crash in Peoria – we have provided you with valuable information you do not want to miss.
Let’s Explain What a Housing Crash in Peoria Is
To begin, let us discuss the various factors that can affect the value of your home and your ability to sell it for top dollar. One of those factors is the potential for a housing crash in Peoria. While it is definitely a scary thing to consider, you should know the ins and outs of the housing crash so that you understand what it is prior to its occurrence.
First, you should be aware of what a housing bubble, or real estate bubble is. This occurs when prices for real estate rise wildly beyond their true worth. This results in a natural correction which will eventually bring those prices back down quickly and hard.
Why exactly do property prices rise? Here are a few of the most common reasons:
- High demand
- Decreased supply
- Low interest rates
There are times, however, when prices increase artificially high, caused by incredibly low interest for borrowing. If there are fewer credit standards for borrowers, this often results in more people getting mortgages.
Even with prices rising, it is not 100% indicative of a housing crash in Peoria. If, however, a bubble bursts, then prices may fall dramatically enough to result in a housing crash and those who owe money on their mortgages will feel the effects.
It is also important to note that housing crashes are not universal in any way. While one market may be crashing, another one may continue to thrive because crashes can occur in local markets, state markets, or in national markets. This happened in 2008.
Housing crashes may also be accompanied by a recession, but that is not universally the case either. They may work together and accompany one another, but they are not necessarily caused by each other.
All You Need to Know About the 2008 Housing Bubble
A Great Recession was caused in 2008 by a decline in housing prices and the burst of the housing bubble. Until then, the housing market had grown steadily throughout the previous years in the decade. In 2006, prices peaked but then began to decline. By December 2008, the Case-Shiller home price index actually recorded the largest price drop in history.
Because of this major price drop, many homeowners had to endure the inability to pay their mortgages. They also found themselves with homes that were worth less than the mortgage in total (a negative-equity position). In this occurrence, banks and lenders found themselves responsible for the mortgages and led to an interest rate hike. Many homeowners couldn’t afford the hikes. As expected, many foreclosures resulted as well as the spark for a recession.
Will There Be a Housing Crash in Peoria?
Even though the housing market has been very hot over the last few years, interest rates have been on the rise due to recessionary conditions and high inflation. This has led homeowners to wonder if the market is heading toward a crash.
The first thing you have to know is the difference between a hot market and a housing bubble. Housing bubbles are pretty rare and defined by unsustainable growth in housing prices as well as low mortgage rates. A hot market, though, is far more common and is influenced by local market conditions as well as supply and demand in the locality.
Because demand is high and supply is low (the most basic and essential concepts of the economy), most real estate professionals agree that Peoria, in general, is not heading in the direction of a housing crash. Home buyers are more creditworthy, and lenders have developed stricter lending requirements. Additionally, home sales have been dropping and sales prices have been rising.
Even though interest rates are higher than normal and this can lead to lower housing prices or a plateau in prices, there is no indication that we are certainly heading for a housing crash in Wittman similar to the one in 2008.
High interest rates may lead to lower housing prices or an overall plateau in prices, but this doesn’t mean there will be a sharp crash like the one in 2008.
How Do iBuyers Impact the Housing Market?
In addition to everything above, homeowners need to be aware of and consider the role of iBuyers in a potential housing crash in Peoria. An iBuyer purchases a home as-is from a home seller with no expectations of repairs or renovations. It makes the home selling process much simpler because home sellers do not have to repair, renovate, market, list, or sell the home with the help of a realtor. They can simply sign the document, get their money, and move forward.
An algorithm is used by iBuyers to determine the ideal price to pay for a home. They make a profit from those homes by fixing and selling them at a higher price. This is a relatively new concept, but they can drastically change the local market. Home sellers who are not willing to sell to an iBuyer cannot compete with the flipped homes that iBuyers are offering, so that can severely impact the overall prices in that region.
An experienced realtor can help you when it comes to the potential impact of an iBuyer on your local housing market. Our realtors are happy to fill you in on all of the details and make sure you are still able to sell your home fast and for the highest price possible.
Things to Consider If You Sell a House During a Housing Crash in Peoria
Research the Right Price
Whether there is a housing crash in Peoria or a full-on recession, pricing your home properly is critical. You may have to reduce the price lower than expected due to higher interest rates. If the price is too high, you have the potential to scare away home buyers who are looking for a cheap home to compensate for the rise in mortgage rates. A price that is too low will result in you missing out on profits from your asset.
The best way to make sure your home is priced correctly is by working with a realtor who has insider knowledge of the local market, especially during a recession. Your realtor could figure out the pattern of home prices and help you develop an unique pricing strategy for your home that an iBuyer’s algorithm could not come up with.
Get the House into Move-In Ready Condition
Home buyers are not looking to spend any more money than they already will be on the home, so it is crucial that they do not have to repair or renovate. If your home is move-in ready, it will be far more attractive than others which do require work.
If you want to sell a home fast, make the investment. It will be worth it. You should get a pre-inspection, make necessary repairs, hire a professional cleaning service, and ensure that furniture, decor, and colors are as neutral as possible. Our realtors can give you more specific details for selling your home fast.
Be Sure the Timing Is Right
As you might have guessed, it is best to avoid selling a home during a housing crash in Peoria, but if your circumstances dictate that you must, the timing will be tricky. You should also be aware that you may end up selling the house for less than you had originally paid for it.
Because the timing of the sale can be so tricky, it is important that you work with an experienced realtor who can provide you the assistance you need to consider prices in the local market and help you determine how long you may be able to wait until prices fall even lower.
Buying a Home During a Housing Crash in Peoria Can Take Some Pressure Off
Should you need to also buy a home during a housing crash in Peoria, the timing issue may not be quite as critical. While you will likely be selling your home for less than you expected or hoped, you will also be able to buy a home for a much lower price. Obviously, you want to buy low and sell high. Keep this in mind as you work through the real estate process.
When the economy recovers – and it will – your equity in your new home will grow and you can even sell your new home for a higher price than the price you paid. This will all work in your favor.
Sell a Home During a Housing Crash in Peoria Fast with Our Team
We know that the economy can be worrisome for home sellers, but we do not want you to panic. Stay calm because we are offering our services to you with unique guarantees that are unparalleled in the real estate industry and especially throughout Arizona. If you need to sell a home during a housing crash in Peoria, we can help you make that happen!
With our knowledge of the local real estate market as well as our experience in the industry, you can rest assured that your home will sell fast and for top dollar, even in a housing crash in Peoria. Our Guaranteed Sale Program is here to absolutely guarantee that your home will sell at an agreed-upon price and within a specific timeframe. If not, Tim Kendrick will buy it himself.
Yes! We Can Sell Your Home During a Housing Crash in Peoria
Ready to sell your home even during a housing crash in Peoria? Be sure you reach out to our experienced and skilled realtors at Your Home Sold Guaranteed Realty AZ. The process may be stressful and challenging because of the economic downturn, but you should never give up hope of selling during a crash. Our knowledge of and experience in the local area are key to helping you sell fast.
When you need to get your home sold fast and for the highest price possible, our team can make sure it gets done regardless of the current market conditions. Our realtors are dedicated to ensuring you make the right decisions for you and your family because we understand how the home selling process can affect everyone in your life for years to come.
If you are ready to sell your home, be sure to call our realtors at 623-283-2067 or fill out the form below with the requested information to learn how to get started. We can’t wait to talk to you about your real estate goals and get you started on your home selling journey.